Nvidia CEO Jensen Huang has emphatically countered rising speculation about an AI bubble, backed by a stellar third-quarter earnings report that far surpassed market expectations. The chipmaker’s performance suggests the AI revolution is not just sustaining momentum but accelerating at an unprecedented pace.
The company announced a record-breaking revenue of $57 billion for the third quarter, marking a 62% increase compared to the same period last year. Net income also saw a significant surge, reaching $32 billion, a 65% year-over-year jump. Both figures comfortably beat Wall Street forecasts, signaling robust and growing demand for its technology.
Data Center Dominance Fuels Record Growth
The driving force behind Nvidia’s explosive growth is its data center business, which generated a record $51.2 billion in revenue. This represents a staggering 66% increase from a year ago and a 25% rise from the previous quarter. The remaining $5.8 billion was contributed by its gaming, professional visualization, and automotive segments.
Nvidia’s CFO, Colette Kress, attributed this surge to an acceleration in computing needs, driven by powerful new AI models and agentic applications. Kress highlighted that the company announced AI factory and infrastructure projects in Q3 involving an aggregate of 5 million GPUs.
“This demand spans every market, CSPs, sovereigns, modern builders enterprises and super computing centers, and includes multiple landmark build outs,” Kress stated.
Blackwell GPUs and The Virtuous Cycle of AI
Sales of the company’s new Blackwell architecture GPUs have been exceptionally strong, with Huang noting that sales are “off the charts.” The Blackwell Ultra GPU, unveiled in March, has quickly become the company’s leading product.
Huang described the current market dynamics as a “virtuous cycle of AI,” where demand for both training and inference is growing exponentially.
“The AI ecosystem is scaling fast — with more new foundation model makers, more AI startups, across more industries, and in more countries,” Huang said. “AI is going everywhere, doing everything, all at once.”
Geopolitical Headwinds in China
Despite the overwhelmingly positive results, Nvidia did face challenges. Kress noted that shipments of its H20 data center GPU, designed for generative AI, amounted to 50 million units, a figure considered disappointing. This was attributed to an inability to fulfill orders in China due to geopolitical tensions.
“Sizable purchase orders never materialized in the quarter due to geopolitical issues and the increasingly competitive market in China,” Kress explained on the earnings call.
Implications for the MENA AI Ecosystem
Nvidia’s soaring revenues and the immense demand for its GPUs have direct implications for the MENA region’s burgeoning AI sector. As countries like the UAE and Saudi Arabia invest heavily in building sovereign AI capabilities and large-scale data centers, the global supply and demand for high-performance chips become critical.
The overwhelming demand for Nvidia’s hardware underscores the intense global competition for computing resources. For MENA-based AI startups and large enterprises, this could mean navigating higher costs and potential supply constraints. However, it also validates the region’s strategic focus on AI infrastructure as a cornerstone of future economic growth, positioning MENA as a key market for global tech leaders like Nvidia.
About Nvidia
Nvidia is a global technology company known for designing and manufacturing graphics processing units (GPUs) for the gaming and professional markets, as well as system on a chip units (SoCs) for the mobile computing and automotive market. The company has become a leader in the field of artificial intelligence and high-performance computing, providing the foundational hardware that powers data centers, deep learning, and AI applications worldwide.
Source: TechCrunch
